State Transport Firms See Decline in Passenger Count in First Half

Estonian Air and passenger train operator Elektriraudtee, both state-owned, reported significant drops in passenger numbers in the first two quarters.

Over 250,000 people flew with Estonian Air in the first six months of the year, a dramatic decrease from the 423,000 people seen in the same period last year, the company said in a press release today.

“Compared with the two previous years, we are offering fewer seats and return flights, which explains the decline in passenger numbers,” said Ilona Eskelinen, a spokeswoman for the airline.

Eskelinen said that passenger numbers were 4 percent lower than expected, but revenue per passenger was higher, adding that according to a recently drawn up restructuring plan, the airline expects to fly 600,000 passengers this year.

Eskelinen said the company has fulfilled its half-year targets and has stabilized, after a year of turbulence which saw the CEO replaced, as well as major layoffs and cut-backs in the fleet.

New trains to save the day

Elektriraudtee, which operates rail connections in Harju County, reported that passenger numbers declined by a fifth in the first half of the year compared with the same period in 2012.

Just over 1 million people were transported in six months from January, bringing in nearly 1 million euros in ticket sales.

Norbert Kaareste, head of sales and marketing at the company, said in a press release today that figures from June paint a more optimistic picture, adding that with the new trains entering service, passenger numbers are expected to grow.

The company is in the process of introducing a brand new rolling stock and will take over intercity routes from Edelaraudtee in January.

The Ministry of Social Affairs is passing around a possible bill that would allow Estonia to apply for support with the European Globalization Adjustment Fund (EGF) in connection with large-scale layoffs at the shale oil producer Viru Keemia Grupp.

A conference on the sharing economy, bringing together around 100 entrepreneurs, experts and politicians from Estonia, Latvia, Lithuania, Finland and Cyprus, is taking place at the Riigikogu on Thursday.

Former employees of the bankrupt national carrier Estonian Air turned to court in the matter of their representation on the bankruptcy committee, the Baltic News Service reported on Thursday. The Estonian Air Line Pilots Association won’t accept representation by Tallinna Lennujaama AS, itself a state-owned business.

The low oil price on the global market affects several large employers in Estonia. Viru Keemia Grupp recently announced layoffs, and Eesti Energia and Kiviõli Keemiatööstus are suffering as well. The latter, owned by oil company Alexela, is not currently considering letting people go, spokesman Marti Hääl said.

The Ministry of Economic Affairs and Communication as well as the Nordic Aviation Group (NAG) said on Tuesday that no insider information was involved in the Nordic Aviation Academy taking over pilot training. The ministry left the question of conflicts of interest unanswered.

External finance is being considered as an option for the project of overhauling the dam across Väike Väin Strait between the West Estonian islands of Saaremaa and Muhumaa, the regional newspaper Saarte Hääl reported.

According to Erik Sakkov, management board member of the Nordic Aviation Group (NAG), Toomas Uibo serving on the company’s supervisory board doesn’t constitute a conflict of interest because the supervisory board does not actively participate in leading the company.

The Nordic Aviation Group is looking for pilots abroad while at least another 30 qualified cockpit staff are in Estonia. The pilots are reluctant to take up work with the new state-owned airline because of its staffing model, lower salary, and working conditions.

A bill to legalize ride-sharing services such as Uber, Taxify, Hopp and Wisemile as a new category of service called "negotiated passenger transport" will reach the Riigikogu next week, Postimees reported.

Nasdaq and the Estonian state announced that Estonia's e-residency platform will be facilitating a blockchain-based e-voting service. This will allow shareholders of companies listed on Nasdaq's Tallinn stock exchange to vote in meetings without being physically present.

A former CEO of EG Ehitus, a subsidiary of Eesti Gaas, apparently made payments in the amount of two million euros for dealings with a company either he himself or his business partners were managing at the time.

PKC Eesti, the Estonian arm of the listed Finnish manufacturer of cable harnesses for the automotive industry, is to close its plant in the North Estonian city of Keila next March and lay off 613 employees.

The North prefecture of the Estonian Police and Border Guard insists that drivers transporting passengers using the Uber app must have a corresponding operating license, and that doing it without a license constitutes an act of misdemeanor.

Minister of Entrepreneurship Liisa Oviir (SDE) would like to replace Enterprise Estonia, the Development Fund, and Kredex with only two institutions to support new businesses. A new development bank and an entrepreneurship agency could also cover efforts by other state institutions to foster business development.

Monday was the last day for Estonian Air passengers who didn’t get their tickets replaced when the airline went into liquidation to demand compensation for tickets bought. 15,806 applications were submitted.

Estonia's Port of Tallinn is in talks with several investors over building a refinery capable of processing 3-6 million tons of crude oil per year. The new refinery would be built at the Paldiski South Port.

Approximately 40,000 square meters of new retail area is to be completed in the shopping centers of Tallinn during 2016, and most of it will be located in the less-saturated boroughs of Lasnamäe, Mustamäe and North-Tallinn, an overview compiled by the Uus Maa real estate company says.

The Estonian software start-up Teleport announced earlier today that Jeffrey D. Levine, US Ambassador to Estonia until autumn last year, has joined their team. Levine is one of several former US diplomats working with companies in this part of Europe.

The Government is looking for new sources of revenue. To support local infrastructure, recent administration reform proposals suggest the introduction of a visitor’s tax. Minister of Entrepreneurship Liisa Oviir says more research is necessary.

Estonia ranks 18th in how its domestic policies support worldwide innovation, according to an analysis released today by the Information Technology and Innovation Foundation (ITIF), a global technology policy think tank.